Budgeting & Forecasting#

Create and manage effective budgets and financial forecasts.

Budgeting Approaches#

Zero-Based Budgeting Steps#

1. Identify all activities and their costs
2. Evaluate each: does it create value?
3. Rank by priority/cost ratio
4. Fund top priorities within budget constraints
5. Cut or optimize low-value activities

Forecasting#

Rolling Forecast Model#

# Structure
- Historical data (12-24 months)
- Current pipeline and commitments
- Leading indicators (traffic, leads, bookings)
- Economic assumptions
- Scenario overlays (best/base/worst)

Variance Analysis#

Scenario Planning#

• Base case: Most likely outcome
• Upside: +20% revenue, what would we invest in?
• Downside: -20% revenue, what would we cut?
• Each scenario has specific triggers and action plans
• Review scenarios monthly against actuals